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A friend of mine got a deal on his e36(98) m3 only paid $2500 car had a misfire, I put a new coil and car ran awesome
Weeks later he wrapped it in to a tree
The foot well is banged
I cut the smashed fender out and car drove fine around the block
My main question is if I buy it off him can it be fixed ?
I could get it for 1k but I'm not sure if it'll be the right move

That car is no doubt totaled. The amount of time and money to fix that car right would be ridiculous. For a grand that is a steal though. You can easily get 2500 for the motor and trans. Then the rest will bring in some more scratch. I would do what my brother just did with 2 el caminos. I would buy it and part the engine at which point you'll double your investment. Then go buy a a decent m3 and use what's left of the totaled as a donor car and take and swap parts until yours is near perfect. Then just dump what's left off to someone else cause parting a car is a pain once you start getting into the small ****.